Which of the Following Is Not Required to Be Disclosed

question 58

Multiple Choice

Which of the following is not required to be disclosed, pursuant to GAAP?

• A)Operating income or loss from discontinued component reported on the income statement
• B)A description of facts and circumstances leading up to the sale of a discontinued component within the notes of the financial statements
• C)All gains or losses from sale of the component reported on the income statement or in the footnotes
• D)The book values of major component assets and liabilities reported on the balance sheet or in the footnotes
• E)All of these must be disclosed according to GAAP.

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Definitions:

Ending Inventory

The cumulative worth of all stock, encompassing raw materials, items in the process of being made, and completed products that a company possesses at the conclusion of a financial period.

Specific Identification

A method for inventory valuation where each item in inventory is identified and tracked individually.

Inventory Accounting

Inventory accounting is the process of valuing and tracking physical stock and includes methods such as FIFO (First In, First Out) and LIFO (Last In, First Out).

Merchandise Returns

Merchandise returns are transactions in which customers return previously purchased goods to the seller, usually for a refund or store credit.